Research Update: Mega Group Ratings Affirmed On Plans To Acquire Taiwan Business Bank Dec 05

AbstractOn Dec. 20, 2005, Standard & Poor's Ratings Services affirmed its ratings on International Commercial Bank of China (ICBC, A/Stable/A-1), Chiao Tung Bank (Chiao Tung, A/Stable/A-1), and Chung Kuo Insurance Co. Ltd. (BBB+/Stable/--), operating subsidiaries of Mega Financial Holding Co. Ltd. (Mega), following an announcement by Mega that it intends to acquire up to 26% of Taiwan Business Bank (TBB) over the next year at a price of no more than Taiwan dollar (NT$) 9 per share. The deal is still subject to the regulator's approval. This transaction is a vital part of the government's stated policy of consolidating the banking sector. If Mega acquires full control of TBB and TBB merges with the banking subsidiaries of the Mega group,...

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